Mr Johnson argued while George Osborne's strategy "has been very useful in building international confidence in the Britain's financial position" as a society there is "no point in endlessly berating ourselves and taking hair-shirt attitude".

He said what is needed now is to move away from rhetoric of austerity and give confidence that businesses will invest.

He said if companies would "invest some of the cash in their balance sheets we would see that confidence rewarded in a virtuous circle".